Wolseley predicts growth in pipeline

By Philip Aldrick

12:01AM GMT 22 Mar 2006

The cultural shift by homeowners from Do-It-Yourself to Do-It-For-Me is helping plumbing giant Wolseley expand in an otherwise stagnant UK market.

The company managed organic growth in the UK of 1.5pc for the six months to Jan 31, despite a 4pc decline in the household goods market. Finance director Steve Webster said the outperformance was in part due to the change in DIY patterns.

He said: "I believe it is going to be an increasing trend over the next few years, but I don't think that much of our outperformance was due to it. We have more than our fair share of Government spending [on the Decent Homes initiative]."

DIY retailers are blaming the market downturn on an emerging tendency by homeowners to use builders. "It's natural when you think of people's spending power and reduced time," Mr Webster added.

Wolseley has so far this year spent a record £598m on acquisitions, including a first foray into insulation distribution. "We do expect growth there to be much higher than in the rest of the UK business," Mr Webster said. UK profits rose 5.8pc to £89.6m for the half.

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In North America, which accounts for 65pc of revenues, the company saw profits rise 40pc to £270m. Mr Webster shrugged off the threat from Home Depot, the US home improvement giant which has bought Wolseley's main rival Hughes.

He said: "There's certainly room for two big players in this market." Wolseley is the US market leader in plumbing with 8pc.

Group profits rose 16.6pc to £346m before tax on sales 26.3pc higher at £6.73bn. The shares were unchanged on £14.53.